Statistics

Ø Statistics is the use of data to help

decision maker reach better decision.
Ø Stages in a statistical investigation:
3. Collection.
4. Organization.
5. Presentation.
6. Analysis
7. Interpretation.
Collection of data…….
Ø Data can be collected from three
sources:
2. Secondary source.
3. Internal records
4. Primary source.
Collection of data…….
Ø Secondary source: Journals,
reports etc.
Ø Internal record: Routine
business record keeping like
accounting, sales etc.
Ø Primary Source:
4. Questioning.
5. Observation.
Presentation of data
Presentation can take two basic
forms:
Ø Statistical Table: Numbers in a
logical arrangements, with some
brief explanation to show what
they are.
Ø Statistical Chart: Pictorial device
for presenting data.
Classification of data
Ø It is grouping of related facts into
different classes with respect to
some characteristic known as a
basis of classification.

Ø E.g. Sorting of letters in post office.

Types of classification
Ø Geographical: Area wise e.g.
cities etc
Ø Chronological: On the basis of
time
Ø Qualitative: According to some

attributes.
Ø Quantitative: In terms of
Geographical Classification
Ø Data is classified on the basis of
geographical or locational
differences between various items.
Ø Two approaches of classification:
üIn alphabetical order.
üBy size.
üE.g. Distribution of grain
production all over the India.
Chronological
Classification
n Used when data is observed over a
period of time.
n Approach:

Starting with earliest time period

and further in chronological order.
E.g. GDP analysis from 1991
onwards.
Qualitative Classification
Ø Data is classified on the basis of
some attribute or quality such as
sex, blindness etc.
Ø Attributes under study cannot be
measured.
Ø Different types:
d. Simple.
e. Twofold or dichotomous
f. Manifold
Quantitative Classification
Ø Refers to classification of data
according to some characteristics
that can be measured such as
height, weight etc.
Ø Two basic elements:
üVariable
üFrequency.
What is Variable????
Ø Variable refers to characteristic that
varies in amount or magnitude in a
frequency distribution. It can be
continuous or discrete (Discontinuous).
Ø Continuous variable is capable of of
manifesting every conceivable fractional
value within the range of possibilities.
Ø Discrete is capable of taking only finite
“JUMP” values.
Ø Practically almost every observation will
be discrete one.
Frequency distribution
Refers to data classified on the
basis of some variables that can be
measured such as price, wages,
age etc.
Classification acc. to class
intervals
Ø Class Limits
Ø Class Intervals
Ø Class frequency
Ø Class midpoint
Midpoint = Upper limit + Lower
Limit
2
Methods of classification
n Exclusive method: Upper limit
has not included in the class.
n Inclusive method: Both upper

as well as lower limits has

been included.
Principles of classification
n No. of classes should be more than 5.
Otherwise it may not reveal the
essential characteristics.
n Struge’s formula:
K=1+3.322logN; N- No. of observation.
n Prefer class interval of five or multiple of
five.
n Starting point should be either zero, five
or multiple of five.
n To ensure continuity, prefer exclusive
Tabulation of data
Statistical table is a logical
listing of related quantitative data
in vertical column and horizontal
rows of numbers with sufficient
explanatory and qualifying words,
phrases and statement to the form
of titles, headings and notes to
make clear the full meaning of
data and their origin.
Parts of the table
n Table number
n Title of the table
n Caption
n Stub
n Body of the table
n Head notes
n Footnotes
Types of Table
Ø Simple and
complex table
ü Single or one way
table
ü Two way table
ü Higher Order
Table
Ø General and
specific purpose
Charting data
Ø Why Charts???
ü Easy to analyze
ü Greater memorize

Ø Types of charts:
ü Diagram
ü Graphs
Rules for constructing
diagram
Ø Title should be given to every
diagram
Ø Scale should be in even numbers.
Ø Footnotes, Index should be added
to clarify points about the graphs
Ø Diagram should be neat and clean.
Ø Simplicity.
Types of diagrams
Ø One dimensional diagram e.g.. Bar
diagram
Ø Two dimensional e.g.. Rectangles
etc.
Ø Pictogram and cartograms.
Bar Diagram
Ø A bar is a thick line whose width
is shown merely for attention.
Ø Merits of bar diagrams:
ü Easily understandable to those
who are unaccustomised to
reading charts
ü Simplest and easy to make
ü Easy to compare no.of
Rules for Bar Diagram
Ø Width of bars should be uniform.
Ø Gap between two bars should be
uniform throughout.
Ø Bars can be vertical or horizontal.
However vertical bars are easy to
read.
Ø While constructing bars, it is
preferable to write respective
figure so that reader can know the
Types of Bar Diagram
Ø Simple Bar Diagram
Ø Subdivided Bar Diagram
Ø Multiple Bar Diagram
Ø Percentage Bar diagram
Ø Deviation Bars
Ø Broken Bars
Simple Bar Diagram
Ø Used to represent only one variable.
Ø Only length matters in this case
Ø Limitation is that it can present only
one classification or one
category of data
Sub divided Bar Diagram
Ø Used to represent various parts of the
total.
Ø It cannot be used where no. of
components is more than 12.
Ø Can be used to represent % distribution
ration in place of pie chart.
Multiple Bar Diagram
Ø In this two or more sets of interrelated
data are represented.
Ø Technique is same as that of simple
bar diagram.
Others
Ø Deviation Bars
2. Used for representing
net quantities-Excess or
Deficit.
3. Can be positive, zero or
negative.
Ø Broken Bars
5. Used where variation in
values is very high.
6. To gain space for smaller
bars, large bars may be
broken.
Two Dimensional
Diagrams
Ø Both length as well as width is
considered in this type.
Ø Types of 2-D diagrams:
ü Rectangle
ü Squares
ü Circles
Rectangle
n Area is consider in this type as it is product
of length and width.
Pie Chart
Ø Used to represent a
total into its
components.
Ø Can be constructed on
the basis of angle
(360o) or percentage
(100%).
Ø Limitation
4. Less effective for
reading and
interpretation,
particularly when
series are divided into
large no. of
Pictogram
Ø Data is represented through a pictorial
symbol that is carefully selected
Ø Merit:
ü Facts portrayed in pistorial form are generally
remembered longer than facts presented in
the tables.
ü Greater attraction thus used to draw attention
of masses in exhibitions etc.
Ø Limitation:
ü It is difficult
to construct.
Cartogram
n Used to give quantitative
information on a
geographical basis.
n Quantity on the map can
be shown in many ways
such as through use of
colors, dots, by placing
pictogram in each
geographical unit and by
placing appropriate
numerical figure in each
geographical unit.
How to select diagram.
Ø Depends upon two factors:
2. Nature of the data.
3. Type of people for whom diagram
is meant.
How to select diagram.
Ø Simple bar diagram when change in
total is required.
Ø Component Bar diagram when change
in total as well as in the size of
component is required, but component
should not be more than 3 or 4.
Ø Percentage sub-divided bar charts are
better suited when change in relative
size of component figure are to be
exhibited.
Ø Multiple bar chart when change in
absolute value of component are to
Continue….
n Pie chart is useful when it is
desirable to show relative
proportion of figure that go up to
make overall total, but cannot be
used where series of figure is
involved as it is very difficult to
compare.
n Pictogram and cartogram are more
informative and more effective
than other forms of presentation to
Graphs
Ø Graphs can be mainly divided
under two heads:
2. Graphs of time series or line
graph.
3. Graphs of frequency distribution.
Line graphs
Ø Time is taken on X axis and variable on
Y axis.
Ø If unit of measurement is same we can
represent two or more variable on the
same graph.
Others
Ø Range chart
Used to show the range
of variation i.e. minimum
and maximum value of
variable.

Ø Band Graph
It is type of line graph
which shows the total for
successive time period
broken up into subtotals
for each of component
Graphs of frequency
distribution
Ø Histogram
Ø Frequency polygon
Ø Smoothed frequency curve
Ø Cumulative frequency curves or ogives
Histogram
Ø It is a graph that represent the class
frequencies in a frequency distribution
by vertical adjacent rectangles.
Ø Observations are plotted on the
horizontal axis and corresponding
frequencies on the vertical axis.
Ø Construction:
ü For distribution having equal class
interval.
ü For distribution having unequal class
Histogram…

Ø Histogram with equal class interval

Height of rectangles will be proportional to the
frequencies.

Ø Histogram with unequal class interval

Heights will be proportional to the ratios of the
frequencies to the width of the class e.g.. For
the frequency having twice class interval than
the smallest class limit, height of the rectangle
will be half than the corresponding frequency.
Limitation of charts
Ø Easily misinterpreted.
Ø 2D and 3D diagrams cannot be
accurately appraised visually and
therefore should be avoided.
Ø Can present only limited amount of
information.
Ø Represent only approximation
values.